Washington, D.C. – With Congress and
the White House examining the possibility of new legislative measures that can
help create additional jobs, the Senate sponsors of new solar power
manufacturing legislation are asking President Obama and Senate Majority Leader
Reid to take their bill into consideration. The bill’s sponsor, Senator Robert
Menendez (D-NJ), along with its lead co-sponsors, Senators Debbie Stabenow
(D-MI), Michael Bennet (D-CO), Ron Wyden (D-OR) and Kirsten Gillibrand (D-NY),
today sent letters to the President and Majority Leader urging them to take up
the Solar Manufacturing Jobs Creation Act (S.2755).
Currently, a 30 percent Solar Investment Tax
Credit (SITC) exists for the purchase or installation of solar power
technology. Under this bill, equipment and facilities used to manufacture solar
power technology would be added to the eligible property list for the SITC.
In their letter, the senators cite
projections that, in 2010 alone, their legislation would create nearly 7,200
jobs in solar energy manufacturing, in addition to 2,700 construction jobs to
build new plants. The senators also point out that the United States has fallen
far behind countries like China in the manufacturing of solar power technology.
“While the recovery package has been a good
start, there is more we can do to create jobs while positioning the United
States as the leader in the technology that will power the 21st century global
economy. It is with considerable dismay that we note that the United States is
falling behind other countries in this critical competition,” wrote the senators. “As
our economy recovers, ensuring that job creation happens as soon as possible is
our highest priority. As we proceed, let us take advantage of this
opportunity to position our nation as the clean energy leader for the 21st
century. Our legislation would move us in that direction.
Background on solar manufacturing and the
legislation:
The U.S. is losing
the global race for solar technology and manufacturing jobs.
- A decade ago, the U.S. produced more than 40% of the
word’s solar photovoltaic (PV) cells. - In 2008, the U.S. produced only 5% of the world’s solar
cells.
The Solar
Manufacturing Jobs Creation Act will spur growth and create jobs.
- Solar energy creates more jobs per megawatt of energy
produced than any other form of energy. - The impact would be immediate with firms having an
incentive to make their investments early in order to capitalize on the
refundable credit.
Other countries are
providing incentives to attract solar manufacturing jobs.
- Malaysia: 15-year income tax holiday.
- Philippines: 6-year income tax holiday.
- Germany: Grants of 30% of investment costs for large
enterprises (40%-50% for small/medium enterprises).
ARRA is a great
start, but not enough to keep solar manufacturing in the U.S.
- The American Recovery and Reinvestment Act (ARRA)
included a competitive tax credit capped at $2.3 billion for advanced
energy manufacturing projects (new code Section 48C). - The credit is a good start to increase domestic solar
manufacturing; however:- Investment decisions are delayed because firms must
apply and be certified for the credit. - The cap will cause the program to likely sunset after
the first round of applications.
- Investment decisions are delayed because firms must
PDF of letter to President Obama: http://menendez.senate.gov/imo/media/doc/20091130ltrSolarJobs.pdf
Text of letter:
November 30, 2009
President Barack Obama
The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500
Dear Mr. President:
As you work with Congress to craft legislation that will
spur job creation, we urge you to consider legislation that will not only
create jobs but also set the stage for our long-term prosperity. To that
end, we recently introduced the Solar Manufacturing Jobs Creation Act to
encourage investment in America’s solar energy manufacturing industry, which
will create jobs, make us more energy secure, and reduce global warming
pollution. We know that you share these goals, so we wish to work with
you to include this legislation in any jobs or clean energy bill that Congress
considers in the near future.
The Solar Manufacturing Jobs Creation Act builds on the
progress toward clean energy that was marked by the passage of the American
Recovery and Reinvestment Act. The recovery package invested more than
$45 billion in programs and more than $21 billion in tax incentives to initiate
a transition to a clean energy economy.
While the recovery package has been a good start, there
is more we can do to create jobs while positioning the United States as the
leader in the technology that will power the 21st century global
economy. It is with considerable dismay that we note that the United
States is falling behind other countries in this critical competition.
For example, a decade ago the United States accounted for more than 40% of the
world’s solar photovoltaic (PV) cells, but in 2008 we produced just 5% of the
world’s PV cells. Countries like China, Germany, and Japan are leading
the way in attracting private capital by establishing powerful incentives for
investing in solar manufacturing. It is time for those technologies and
the jobs that accompany them to be found right here in America.
Our legislation would create jobs here at home while
setting the stage for economic growth for decades to come. It would make
investments in equipment used to manufacture solar energy technology eligible
for the existing 30 percent tax credit for installation of residential and
business solar energy systems. The tax credit will spur investment in
solar energy, which creates more jobs per megawatt of energy produced than any
other form of energy. What’s more, the impact of the legislation would be
immediate, with firms having an incentive to make their investments early in
order to capitalize on the refundable credit. For these reasons, in 2010
alone our legislation is projected to create nearly 7,200 jobs in solar energy
manufacturing and 2,700 construction jobs to build new plants, yielding nearly
9,990 direct jobs created. The figure increases to 12,000 jobs when
indirect jobs at upstream suppliers are included. As solar firms
create jobs and innovate, so will America move forward as the global leader in
clean energy technology, improving our energy security while combating global
warming.
As our economy recovers, ensuring that job creation
happens as soon as possible is our highest priority. As we proceed, let
us take advantage of this opportunity to position our nation as the clean
energy leader for the 21st century. Our legislation would move
us in that direction. Thank you for your consideration, and we look
forward to working together to create jobs and set the stage for America’s
long-term economic leadership.
Sincerely,
ROBERT
MENENDEZ
United States Senator
DEBBIE STABENOW
United States
Senator
MICHAEL
BENNET
United States Senator
RON WYDEN
United States
Senator
KIRSTEN GILLIBRAND
United States Senator